Freetech Road Recycling Technology (Holdings) Limited provided earnings guidance for the year ending December 31, 2014. For the year, the company expected consolidated profit attributable to owners of the parent of the to decrease by approximately 70% as compared to the Net Profit for the year ended 31 December 2013, notwithstanding that the Company expects the total area serviced of the asphalt pavement maintenance (the 'APM') services segment for the same period remains stable. The expected significant decline in Net Profit is mainly attributable to: a significant decrease in revenue of APM equipment segment due to the adjustment of the group's business strategy to appoint local experienced APM service providers as its franchisees.

The Company is focusing on managing the existing joint ventures and assist them to seize the business opportunity from 2015 road inspection. As a result, the number of new joint ventures being set up and the number of modular series being sold significantly declining; a decrease in the gross profit margin of the APM services segment due to part of the 'Hot-in- Place' technology APM services projects being performed in lower selling price areas and the Group has performed more non-'Hot-in-Place' technology APM services projects including 'Optimization Cold-in-Place' technology and road base maintenance projects which have lower gross margins; as the franchisees are still in their early stage of operation, the APM services revenue contributed is yet to be significant and not sufficient to offset against the significant decrease in revenue of APM equipment segment; an increase in operating costs; and an increase in impairment of trade receivables.